US vs Guinto; G.R. No. 76607; 26 Feb 1990; 182 SCRA 644

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The USAF stationed in Clark Air Base solicited bids for contracts for barber services in the base. The bidding was won by Ramon Dizon. Private respondents objected, claiming Dizon had made a bid for four facilities.

Whether or not petitioners are immune from suit.

NO. When the state enters into a commercial or business contract, the state divests itself of its privilege and lowers itself to the level of the other party.

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